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ADM, QLF form liquid feed joint venture

New joint venture Alliance Liquid Feeds will serve portions of the Western United States.

Archer Daniels Midland Company (ADM) and Quality Liquid Feeds, Inc. (QLF) announced today that the two companies have entered into a 50-50 joint venture for the production and sale of liquid feed supplements for livestock. The joint venture consists of four liquid feed production facilities formerly owned by ADM—in Twin Falls, Idaho; Billings, Mont.; Fremont, Neb.; and Johnstown, Colo.—as well as the Loomix brand.

The new venture, which will be called Alliance Liquid Feeds, will serve portions of the Western United States. Quality Liquid Feeds continues to be owned by the Berg family and will continue to market QLF-branded liquid feed supplements out of their 12 facilities in the Midwest, East and Southwest United States.

“One of the ways we are increasing earnings power at ADM is by partnering with other great companies,” said Brent Fenton, president, ADM Animal Nutrition. “In this case, we’re joining with a strong partner in QLF, which allows us to expand our capabilities while simultaneously reducing the capital we have invested in the liquid feed business. Customers will benefit from the combined expertise, resources and efficiency of the joint venture, and our shareholders will benefit from the improved returns we expect from the business. And by combining resources, we expect to see significant advancements in operational efficiencies, from capital reduction to supply chain enhancements to sales/margin improvements.”

Cory Berg, QLF chief executive officer, said the joint venture allows QLF to expand into markets that the company has had its sights on for a number of years.

“The new company will benefit from QLF’s expertise and 38 years of experience producing and supplying liquid feed 24 hours a day, seven days a week, 365 days a year. At the same time, it provides us a strong partner in ADM, with its overwhelming supply of ingredients, experience and knowledge in supply chain management, research, and industry connections,” Berg said.

Existing Loomix customers will see a seamless transition as the new business continues to offer high-quality products, strong customer service and, eventually, new products.

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